New franchising code rules
A was introduced on 1 April 2025.
Under the code new rules apply. Some of these rules apply from 1 November 2025.
View guidance on changes to the franchising code and when they apply.
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Laws affecting franchising rights and obligations
Franchisors and franchisees have rights and obligations under the:
The ÌÇÐÄÔ´´ regulates the franchising code and the Competition and Consumer Act 2010. When they are not followed, penalties can apply.
Franchisees and franchisors can also take private legal action against each other under these laws.
Franchising Code of Conduct
The ÌÇÐÄÔ´´ regulates the Franchising Code of Conduct and provide guidance about the code.
For more information about rights and obligations for franchisors and franchisees under the code, see Franchising Code of Conduct.
Competition and consumer laws
Businesses in Australia must follow competition and consumer laws of Australia. These national laws are known as the Competition and Consumer Act 2010 and include the Australian Consumer Law. They apply to franchisors and franchisees.
Some of these laws apply specifically to small businesses and so include those franchisees that are small businesses.
Competition and consumer laws that apply to franchising include:
- Australian Consumer Law, requiring businesses to provide consumer guarantees for most goods and services they sell
- laws that prevent parties from including unfair terms in contracts, including franchising agreements
- laws prohibiting franchisors engaging in misleading or deceptive conduct or unconscionable conduct when dealing with franchisees
- laws that prevent competition from being substantially lessened, where franchise supply arrangements amount to exclusive dealing
- laws that say that documents or information given to franchisees by a franchisor must not contain information that is misleading or deceptive.
You can read more about the rights and protections that businesses have under the Competition and Consumer Act 2010.
Other laws affecting franchising operations
Franchisors and franchisees may also have obligations under other laws, such as:
- the
- the
- Australia’s tax laws
- state and territory licensing schemes.
Contract law and franchising
As the franchise agreement is a contract, contract law is important in franchising.
When a franchisor or franchisee doesn't follow the franchise agreement, this may mean a breach of the contract.
When the franchisor hasn’t followed the franchise agreement, it may not mean that regulations in legislation have been broken. It can mean that the franchisor has breached their contract with the franchisee, which is a matter between two private parties.
If you think the other party to your contract has not followed the franchise agreement and you want to make them follow it, you need to take your own action. You:
- can ask the to help you begin an alternative dispute resolution process
- may want to get independent advice from a lawyer.